Can or should I 1031
I closed on my property about 2 years ago and built a house on it for a total of $110k and I'm currently closing on selling the property for $209k. With it being my primary and only property, can I do a 1031 to avoid capital gain tax or would I even be taxed? I'm in Missouri, if that makes a difference.
If I need to 1031 my money, what is the time line to be closing? Thank you in advance!
Since this was your primary residence and not an investment, it would not qualify for a 1031 exchange. Good news though, there are no capital gains on primary residence unless you made hundreds of thousands of profit on it.
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Originally posted by @Brody Mcgowan:I closed on my property about 2 years ago and built a house on it for a total of $110k and I'm currently closing on selling the property for $209k. With it being my primary and only property, can I do a 1031 to avoid capital gain tax or would I even be taxed? I'm in Missouri, if that makes a difference.
If I need to 1031 my money, what is the time line to be closing? Thank you in advance!
No, you can not do 1031 on your primary residence, but you do not need to. You gain on a primary residence are excluded under section 121. You have to meet few requirements. Please check the other thread on sec 121.
i think a primary residence if you have lived there for 2 of 5yr is exempt of capitol gaines.